Eoin Hayes (Dublin Bay South, Social Democrats)
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378. To ask the Minister for Finance the monitoring measures his Department will take in assessing the ongoing impact of the new VAT reduction on new apartment sales from 13.5 % to 9 %; and if he will make a statement on the matter. [61048/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Given the centrality of housing to the achievement of Government’s wider societal and economic goals, the Department of Finance closely monitors all aspects of the housing market including building activity, the labour market, costs and prices. Department officials will continue to closely monitor developments in the housing market, including in relation to new apartments.

Eoin Hayes (Dublin Bay South, Social Democrats)
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379. To ask the Minister for Finance the monitoring measures his Department will take in assessing the ongoing impact of the residential development stamp duty refund scheme; and if he will make a statement on the matter. [61049/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Residential Development Stamp Duty Refund Scheme provides for a partial repayment of Stamp Duty paid on the acquisition of land where the land is subsequently developed for residential purposes.

The Scheme was introduced to encourage residential property development and, as such, contains strict conditions designed to satisfy this policy intent. These include the condition that construction operations must commence on the land within 30 months after it has been acquired, and the condition that the development must be completed within 30 months after it has been commenced. Where the development is carried out in phases, as is the case in relation to many multi-unit developments, each phase must be completed within 30 months after it has been commenced.

Where the conditions of the Scheme are met, the amount to be repaid is the difference between the Stamp Duty paid at the rate of 7.5 per cent on the acquisition of the land and the amount that would have been paid had the rate of 2 per cent applied.

The Scheme is being extended by five-years in Finance Bill 2025 so that it will now operate until the end of 2030. A number of amendments are also being made to it, some of which are primarily technical in nature, however two are designed to enhance the overall effectiveness of the Scheme.

One of these provides that a full repayment of Stamp Duty can be claimed once construction on a multi-phase development commences. Currently, repayments can be claimed either in respect of each phase after construction on it commences, or after the entire development has been completed. This change will improve cash-flow for developers and also cut down on red-tape for them.

I am also extending both of the time limits that apply, i.e. from acquisition to commencement, and from commencement to completion, for large-scale residential developments (also known as ‘LRDs’). Instead of the 30-month limits that normally apply, 36-month limits will apply in the case of LRDs. This change is intended to reflect the fact that such developments can take longer to get off the ground and to complete than small scale developments.

As with all tax reliefs and exemptions, my Department continues to monitor the effectiveness of this relief, engaging with Revenue, the Department of Housing, Local Government and Heritage, and other interested parties as necessary. In turn, and as exemplified by the proposed changes set out in Finance Bill 2025, my Department will then recommend actions to me intended to enhance that effectiveness where a need for them has been identified.

To conclude, I would also point out that the application of sunset clauses, such as the one that applies to the Scheme whereby it is currently due to close to new commencements on 31 December 2025 but is being extended to 31 December 2030 in Finance Bill 2025, ensures that tax reliefs and exemptions are reviewed in depth, and with a regularity commensurate with their uptake and the level of potential revenue foregone.

Eoin Hayes (Dublin Bay South, Social Democrats)
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380. To ask the Minister for Finance the monitoring measures his Department will take in assessing the ongoing impact of the enhanced corporation tax deduction for apartment construction; and if he will make a statement on the matter. [61050/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The high costs of apartment construction is rendering them not economically viable in the current market, preventing their construction in the numbers required to meet national housing targets. As one element of the Government's overall strategy to accelerate housing delivery, in Budget 2026 I introduced a new enhanced corporation tax deduction of 125% of certain qualifying costs, up to a maximum additional deduction of €50,000 per apartment. This has the potential to providing a net cost reduction of up to €6,250 per apartment, with a view to improving viability of apartment construction.

The enhanced deduction will be available in respect of a qualifying apartment block consisting of 10 or more apartments and is available for both new-build developments and conversion of non-residential buildings into a qualifying apartment block.

A claim may be made, on the company's corporation tax return, once the certificate of compliance on completion for the apartment block is lodged with the relevant local authority.

When making a claim, the company will be required to provide:

• details of the eligible expenditure incurred in respect of the apartment development,
• the number of apartments in the completed development, and
• such other information as Revenue may reasonably require.